4 Preface Climate change, growing demand for energy and depleting fossil-based resources are emerging as a huge challenge for our society. They demand a change in the mindset and a new direction. In particular, every link in the energy supply chain from generation and distribution through to energy consumption must be optimized in such a way that energy efficiency is increased, renewable energies are developed and greenhouse gas emissions are reduced. New technologies, in particular modern information and communication technologies (ICT), can help us achieve this goal. They provide the information networks and intelligent systems needed to analyze and process data. If we put these technologies to work, we can better meet the major challenges we are facing. The growing importance of ICT in solving energy and climate-specific issues was recently underlined at the world's biggest computer trade exhibition, CeBIT. With its motto Green IT, it clearly illustrated that while ICT was part of the problem, accounting for approximately 2 percent of global CO 2 emissions, it could also be part of the solution to a far greater extent. This is precisely the area where my ministry will be directing its efforts. At the trade exhibition, the E-Energy: ICT-based Energy System of the Future technology competition was very well received. With this new support measure as part of our technology policy, my ministry is focusing on the interface between the energy industry and the ICT industry.

5 3 Due to its importance both in terms of innovation and the national economy, E-Energy was declared a beacon project at the National IT Summit of the Federal Chancellor in December 2006 and As part of this effort, new ICT products, processes and services are developed which can be applied to reduce energy costs, increase the security of energy supply and mitigate the impact of climate change. This brochure provides the reader with an initial overview of the twelve nominees and the six E-Energy projects finally selected for funding. Their implementation paves the way towards an Internet of Energy which intelligently monitors, controls and regulates the electricity system. In particular, the activities of the E-Energy projects strike a balance for the first time between volatile (weather-dependent) power generation and fluctuating power consumption. This is essential to integrate renewable energies. Smart meters, which act as a power center and perform important control functions for distributed producers and consumers, play a pivotal role here. In conjunction with this type of smart power measuring technology, E-Energy solutions can automatically ensure that power is primarily used (in households, machines, plants, commercial and industrial equipment etc.) when it is available at a low cost and in sufficient amounts (e.g. when winds are high or sunshine is intensive) without having to compromise on convenience, energy supply security or quality. The new E-Energy solutions will be tested in selected model regions. The E-Energy beacon project thus aims at takkling climate change and ensuring the secure and reliable supply of energy at competitive prices. Furthermore, it presents a good opportunity for the development of new jobs and markets. This is clearly demonstrated by the diversity of those participating in the E-Energy projects, including ICT vendors, power companies, providers of measuring, control and regulation technology, research institutes, mechanical, plant and equipment engineers, system operators, electrical technicians and facility management companies. There is a real chance that the new jobs will be created and remain in Germany since the E-Energy solutions are tied to model regions and fixed energy infrastructures (power plants and power grids) in the country. This brochure intends to clearly outline the spe - cific goals of the E-Energy beacon project. I am confident this will boost innovation and make Germany the leading ICT and energy center in an area which is critical for global competition. Even though our country is poor in raw materials, it is well positioned on account of its system expertise and its strong tra - dition in energy science and business software. Michael Glos Federal Minister of Economics and Technology

7 What is E-Energy? 5 What is E-Energy? With E-Energy, an Internet of Energy is developed that intelligently monitors, controls and regulates the electricity system. E-Energy: ICT-based Energy System of the Future is a new support and funding priority undertaken by the Federal Ministry of Economics and Technology (BMWi) as part of the technology policy of the Federal Govern - ment. Due to its utmost importance both in terms of innovation and the national economy, it was declared a beacon project at the National IT Summit of the Federal Chancellor. Just like the terms E-Commerce or E-Government, the abbreviation E-Energy stands for the comprehensive digital interconnection and computer-based control and monitoring of the entire energy supply system. It was decided that the electricity sector would be the first area addressed by the project, as the challenges with regard to real-time interaction and computer intelligence are particularly high due to electricity s limited ability to be stored. The primary goal of E-Energy is to create E-Energy model regions that demonstrate how the tremendous potential for optimization presented by information and communication technologies (ICT) can best be tapped to achieve greater efficiency, supply security and environmental compatibility (cornerstones of energy and climate policy) in power supply, and how, in turn, new jobs and markets can be developed. What is particularly innovative about this project is that integrative ICT system concepts, which optimize the efficiency, supply security and environmental compatibility of the entire electricity supply system all along the chain from generation and transport to distribution and consumption are developed and tested in real-time in regional E-Energy model projects. To force the pace on the innovative development needed and to broaden the impact of the results, in April 2007 the BMWi held the E-Energy Technology Competition that focused on the following three aspects: 1. Creation of an E-Energy marketplace that facilitates electronic legal transactions and business dealings between all market participants. 2. Digital interconnection and computerization of the technical systems and components, and the process control and maintenance activities based on these systems and components, such that the largely independent monitoring, analysis, control and regulation of the overall technical system is ensured. 3. Online linking of the electronic energy marketplace and overall technical system so that real-time digital interaction of business and technology operations is guaranteed.

8 6 What is E-Energy? Servers for controlling the flow of information which will also increasingly regulate the flow of energy. With these three focal topics, for the first time the Ministry called for the development of integral ideas and system concepts for an Internet of Energy which considerably eases and speeds up the information, communication and transaction processes on the electricity markets, intelligently monitors, controls and regulates the technical energy infrastructure on the basis of end-to-end digital networking, and links this infrastructure to electronic marketplaces such that the efficient, prompt and transparent coordination of energy supply, (end) energy demand and complementary services is possible in all areas of the power supply system. In the E-Energy competition spec, it was made clear this would not only necessitate technological progress but also the adjustment of organizational structures and general frameworks. In view of the important role E-Energy plays in the development of renewable energy and the increase in energy efficiency, the prize-winning projects are supported and funded in an interdepartmental partnership with the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). Through the collaboration of both ministries, more projects can be supported, which further enhances the reach and impact of E-Energy. The BMWi will appropriate up to 40 million for four model regions and the BMU will make up to 20 million in funding available to two additional model regions. Together with the equity capital of the participating companies, some 140 million will be mobilized for the development of six E-Energy model regions.

9 1,5 1,2 0,9 0,6 0,3 0,0 7 The E-Energy scenario: Intelligent networking of energy generation, distribution and consumption. Apart from the activities in the individual models, the acquisition of transferable skills and expertise, the formation of networks for the rapid exchange of new E-Energy know-how and the initiation of effective overarching collaborative structures to solve critical horizontal issues (e.g. interoperability and standardization, security and data protection, development of the regulatory framework, business models for new services, EU collaboration and further internationalization etc.) is vital. To this end, the BMWi will drive ancillary research in addition to project funding and directly link this to the support of the E-Energy model regions. The specific tasks of the an - cillary research will include the evaluation of pro - gress made in the model regions, the derivation of success factors, the identification of new areas where action has to be taken, the organization of the ex - change of knowledge and cooperative activities and the initiation of new E-Energy networks of excellence throughout the Federal Republic. Thus, the E-Energy beacon project will extend beyond the model regions to make an important economic and technological contribution to solving energy and environmental problems and developing new products, business fields and services. In this way, the BMWi also addresses its principal responsibility for energy and technology policy. ICT is playing an increasingly important role worldwide in solving energy and climate-specific problems. This was clearly underlined, for example, at the world s biggest computer trade exhibition CeBIT in March this year. For the first time ever, the motto of the exhibition was Green IT and the trade show clearly demonstrated that the ICT industry is making more and more efforts to dramatically cut ICT-based energy consumption and harness the huge potential offered by ICT to optimize energy systems. The President of the European Commission, José Barroso, highlighted the need for ancillary support measures in his opening speech at CeBIT. In addition to the Smart Grid Initiative of the European Com - mission, internationally we are also witnessing initial efforts to push this issue forward on a country-specific level, as seen in Austria or the USA.

10 8 Why E-Energy? Why E-Energy? E-Energy harnesses the potential for optimization of ICT in the energy industry. Latest studies and expert opinions (e.g. BMWi Study in December 2006 on the Potential of Information and Communication Technologies to Optimize Energy Supply and Energy Consumption (E-Energy) ) make it increasingly clear that any further development of the energy industry will not be possible without fully drawing on the potential of digital intelligence and networking. In contrast, the general consensus is that the use of ICT in the supply of energy has not played an important role up until now. Both the ICT and the energy industry see that considerable action needs to be taken in terms of technology policy before the enormous potential ICT presents for optimizing the energy industry can be tapped. In the area of electricity, in particular, progress in modernization gives rise to new tasks that can only be solved by end-to-end digital interconnection and computer integration. The generation and retail markets are opening up with progressive market liberalization, for example. This results in greater competition and more complex market relations. The gradual decentralization of power generation also plays a part in increasing the complexity of the energy systems, as it not only causes further diversification of the markets but also leads to many new technical and organizational issues. These include the shift from central, large power stations to dispersed, weatherdependent power producers of different sizes and with different functions, the transition from a network monopoly with a one-way system going from a large-scale power station to the consumer to crossborder integrated networks with two-way power traffic and volatile, dispersed power feed-in, or the move to international, competition-oriented service markets with tailored products for customers. All this underlines how the complexity of energy systems is increasing with progressive liberalization and decentralization measures. What is more, electrical energy can only be stored for a limited period so power supply and power demand have to be constantly matched. On the other hand, the enormous problems we are currently facing in terms of climate change, increasing demand for energy and depleting supplies of fossil fuels mean new solutions are urgently needed. New optimization efforts to increase energy efficiency, develop renewable energy and reduce greenhouse gas emissions, in particular, are called for.

11 9 This is where the E-Energy: ICT-based Energy System of the Future beacon project comes into play since tackling the increasing complexity associated with gradual modernization efforts, and solving the new energy and climate-specific optimization tasks, primarily requires communication and intelligence, i.e. networks for the exchange of information and smart systems for analyzing and processing data. ICT furnishes the main tools needed to make this happen. The E-Energy support initiative is aimed at providing an effective incentive to speed up the development of the necessary ICT products, processes and services, and apply them on a broad scale. In particular, it en - courages the ICT and energy sector to define goals and tasks together, and form interdisciplinary and cross-industry partnership projects to create sample solutions for ICT-based energy systems of the future which are so convincing that they are copied and trigger follow-up investment on a large scale. The focus is on research and development activities (R&D activities) for creating and trialling an integrated data and energy network with completely new structures and functions. Using sample solutions, it should be clearly demonstrated how such an innovative Internet of Energy can guarantee the utmost security and efficiency of electronic business and legal communication between marketers, and how the technical components and infrastructures of the overall electricity system can be intelligently monitored, controlled and regulated, and directly linked to electronic market activities: On the supply side, it will be possible to even out the fluctuations in renewable energy caused by weather conditions through the intelligent blend and complex coordination of sources of energy. In the area of electricity grids, control systems that are linked online guarantee the optimum control of the flow of electricity. On the demand side, the intelligent online coordination and control of power consumption reduces load peaks and results in completely new services. It is particularly significant that the activities of the E-Energy projects enable bi-directional realtime interaction for the first time, thereby striking an accurate time-balance between volatile (weatherdependent) power generation and fluctuating power consumption. The integrated, networked house allows economical energy management. A critical role will be played by intelligent power meters, known as smart meters, which will increasingly replace mechanical models even in private households in the near future, and assume important control functions as an energy control center for dispersed producers and consumers. The new meter technologies boast a wide range of features and capabilities that can open up new services and business fields. Individual rate storage, load profiling, easy remote reading and control or connection to in-house software are just a few of the possibilities these new technologies offer. The smart meters act as an important interface between the end customers, who have not been integrated into the appropriate pro cesses until now, and the grid network operators, suppliers and measuring point operators. E-Energy aims at progressing the wide range of uses of this new smart measuring technology and making it more widespread. For example, in conjunction with smart meters the new E-Energy solutions will create two-way interactions which make the

12 10 Why E-Energy? E-Energy is central to the efficient integration of renewable energy sources. Electric vehicles for short and long distances. management of the grid easier for grid operators, as they have a clearer overview of the processes taking place in the network and of the power downloaded or uploaded. Furthermore, suppliers can offer their customers more flexible rates, and customers can be alerted to price signals so they can shift their consumption of energy to low-load times and thus enjoy the lower tariffs. Ultimately, E-Energy solutions will independently ensure that power is used (in households, machines, plants, commercial and industrial equipment etc.) when it is available at a low cost and in sufficient amounts (e.g. when winds are high or sunshine is intensive) without having to compromise on convenience, energy supply security or quality. On the whole, this will lead to a wide variety of new service offerings, such as comprehensive advice on potential ways to save energy based on measured values recorded. Interesting business models could also take shape for new players, particularly providers that are independent of the energy industry. All this clearly demonstrates that E-Energy re - duces transaction costs and increases transparency in business processes, facilitates the necessary significant development of renewable sources of energy, makes better use of existing grid capacity, evens out load curves and reduces costly control energy needs. Examples of how this works are illustrated in the following E-Energy project profiles. The projects described provide evidence that the greater transparency afforded by E-Energy can also motivate consumers to become actively involved with regard to pricing, providers, the quality of the power on offer and associated services. This not only encourages power saving but also stimulates competition across a far broader range of products, and promotes better comparability and more advertising and marketing on the Internet. The government's interest in the promotion of E-Energy projects is rooted in the enormous impact expected in terms of the national economy and the energy industry. The projects will play a role in promoting greater competition along the value-added chain in Germany - from power stations and network operators to other players in retail, housing and ser - vices. At the same time, innovative growth fields and employment opportunities will be developed at the interface between ICT and energy technology. One important aspect is that the new employment and growth prospects are largely location-specific since the E-Energy solutions created are tied to model regions and fixed energy structures (power stations and power networks) in Germany and are thus not

13 11 Solar parabolic trough power plant for high-yield sunshine regions. exposed to the effects of globalization like other business sectors. Furthermore, the E-Energy activities guarantee new solutions for energy efficiency, supply security and climate compatibility (e.g. reducing control energy needs and primary energy consumption) which are top-priority objectives in the interests of the community and would not be developed to the same extent or at the same rate without additional support and funding. Thus, the E-Energy projects are central in underpinning Germany s leading international position in implementing integrated measures for solving energy and climate issues.

14 12 The winners of the E-Energy beacon project The winners of the E-Energy beacon project State Secretary Dagmar Wöhrl with representatives from the six winning projects at the award ceremony at CeBIT. Assisted by an independent jury, the BMWi nomi na - ted twelve finalists from the 28 entries for the E-Energy technology competition. Following an in-depth pro - ject presentation, the jury chose six projects for funding which were officially announced and granted awards on March 4, 2008 at CeBIT. According to the jury, the winning projects will tap the enormous potential for optimization offered by ICT to achieve greater efficiency, security of supply and environmental compatibility in power supply. Over the course of the following pages, the pro - jects of the finalists and prizewinners will be pre - sented. The projects complement one another such that they provide a representative range of different generation concepts and supply areas, and duplication is avoided to a large extent. As such, the model regions can be split into different categories such as urban conurbation with a high supply density, rural re gion with a low supply density and a regional network with a heterogeneous supply density.

15 13 One focus of the projects is to develop and test the standardized E-Energy architectures and E-Energy platforms needed for business processes and automation. They make it possible to bring all the market participants together online (e.g. households, in - dustrial and commercial customers, retailers, grid operators and large and small generators), guarantee the necessary information, communication and transaction processes, and ensure such processes are secure. Following from this, the E-Energy projects should give rise to a multitude of new kinds of products and services. These could help energy supply systems become more self-regulating through the supply-dependent control of the demand pattern of end consumers, or could make effective incentive programs available to save costs and energy (e.g. with online power consumption analysis, online pricing information, supply conditions and current energy mix or online invoicing and payment systems). In view of the highly complex nature of E-Energy technologies, applications and services, the use and development of practical standards to safeguard the necessary interoperability across the board is a particularly important part of the E-Energy projects, and key to being able to translate the new E-Energy solutions from the model regions to other supply systems. Ultimately, the E-Energy project activities should also scrutinize the legal framework, and make recommendations on how this framework could be improved and developed. Accordingly, a wide variety of utility companies are involved in the projects, ranging from municipal facilities and regional providers to large corporations. The cross-section of the companies participating from the ICT and systems engineering sectors, as well as from equipment engineering and plant construction, is just as diverse with strong representation from the midmarket. Furthermore, close collaboration with universities and Fraunhofer Institutes is also planned in both the ICT and energy sector to pool the many R&D resources and form a critical mass. Overall, The three goals of energy policy. the unusually broad participant structure clearly highlights the tougher-than-average requirements in creating the cross-industry and interdisciplinary framework needed. The six award-winning projects are now to be implemented and will be supported by ancillary research. This will take place as part of an inter-ministerial partnership with the BMU. Under the umbrella of the E-Energy beacon project, the BMWi will provide some 40 million in funding and the BMU will make approximately 20 million available. The participating companies will raise another 80 million so that a total of approx. 140 million in research funds can be mobilized to give the new E-Energy area of innovation the impetus it needs. The six prizewinners are: 3 E-DeMa, Ruhr area model region 3 etelligence, Cuxhaven model region 3 MEREGIO, Baden model region 3 Mannheim model city, Rhine-Neckar model region 3 RegModHarz, Harz model region 3 Aachen model region

16 14 The winners of the E-Energy beacon project E-DeMa, Ruhr area model region prizewinner The Ruhr area is far nicer than its reputation; the region around Essen boasts forests, fields and a large reservoir lake, the Baldeneysee. But that is not what makes the Ruhr so interesting as a model region for the E-Energy project, says Michael Laskowski, coordinator for the E-DeMa project. The abbreviation stands for development and demonstration of decentralized integrated energy systems on the way towards the E-Energy marketplace of the future. The Ruhr area is the perfect fit for this project as it offers an excellent mix of buildings, single-family homes and multifamily residences with different social standards, providing us with a more or less representative cross-section of the entire population structure. Added to that, we have hospitals, small-scale industries, SMEs etc. To all intents and purposes, the region is already relatively an old hand in E-Energy-related issues. For example, RWE has been exploring the area of smart metering for quite some time. Smart metering is nothing more than the process of recording power consumption data intelligently. However, what we have proposed in our project plan is the system integration of smart meters into an intelligent gateway. This type of gateway is a function unit which is part of the customer s sub-distribution system, reading out and controlling smart me - ters on the one hand and processing pricing signals from the power provider on the other. Customers are able to control their household appliances mainly white goods but also dispersed power supply units, such as power-generating heaters, in the future in such a way that it makes the most financial sense for them. In the future, washing machines will be able to provide customers with pricing signals so customers can choose the cheapest rate and be more efficient in their use of energy. This pricing information will be made available to customers through an incentive system and will thus help improve energy efficiency in every household. The customer can specify certain time brackets, explains Michael Laskowski: If you live in an apartment block, the washing machine cannot run at two in the morning as you ll have the neighbors knocking on your door otherwise. So essentially you're telling the machine to wash ecologically but only during these specific periods. If new heating appliances with Stirling units or fuel cells simultaneously generate heat and electricity in the future in such a way they can be controlled, the new ICT control technology will become increasingly important: To ensure the power generated is uploaded at a time that is financially attractive from the customer s perspective, the intelligent gateway controls both energy consumption and energy supply on the basis of price signals from the market! Prosumer* Network carrier Energy retailers Energy generators 2020 E-Energy marketplace New service providers Metering operators *) Prosumer: Customer from the private and commercial customer segment who can actively participate in the E-Energy marketplace and both produce energy (producer) and consume energy (consumer). The E-Energy marketplace is the centre of interest of different stakeholders.

17 15 The control and regulation of consumers and generators in households takes place through a smart gateway on the basis of pricing signals from the E-Energy marketplace. Customers will be able to set all this up on their laptops: The gateway has a wireless interface and customers can configure the system so it s tailored to meet their specific needs. One approach would be the direct control of appliances, which is why we ve also brought a large equipment manufacturer on board. The appliances would then have appropriate re cei - vers so they can react to incoming price signals. We want to encourage customers to actively save and give them the tools they need to make more efficient use of their energy. Praise for the E-DeMa project In general, a distinction is made between those who produce energy and those who consume it, the customers. In the E-DeMa project development and demonstration of decentralized integrated energy systems on the way towards the E-Energy marketplace of the future the concept of a customer does not exist. Instead we refer to prosumers, which are active customers who both generate energy and upload it to the distribution grid (producers) and also consume energy (consumers). And precisely this fact is an important objective of the project, as the scheme promotes the active integration and participation of the end customer in the energy market. The 2020 E-Energy marketplace to be developed as part of the project thus not only links the distribution grids of RWE Rhine-Ruhr to the distribution network of Krefeld municipal utilities, but also focuses on integrating prosumers through ICT gateways which can be used for managing loads, controlling household appliances, smart metering and con - trolling distributed generators. The benefits are numerous, not only in the form of displaying energy consumption or pricing signals for the prosumer, or in the form of online information for better network management on the part of the grid operator. What we will have is a holistic infrastructure for controlling power consumption into which consumers are actively integrated and which can be used as the basis to set up additional energy services.

18 16 The winners of the E-Energy beacon project etelligence, Cuxhaven model region prizewinner... where the sea gulls cry/shrill in the blustery winds/that is my dear homeland / that s where I call home go the lyrics of a traditional north-german song. The words still ring true today since one thing the coastal town of Cuxhaven on the Elbe estuary certainly does have is wind and plenty of it! Directly across the way, behind the northeast bank of the Elbe, you can find the cradle of wind energy - the Kaiser- Wilhelm Polder - one of the most windswept corners of Germany. Cuxhaven has a population of just 52,000 but some 3 million people overnight at Cuxhaven every year no better way of broadcasting the message of E-Energy, says Wolfram Krause from EWE AG and project manager of etelligence, the E-Energy project in the region. He went on to explain how the region was perfectly suited to the project, highlighting the wide range of renewable energy available, namely wind, photovoltaic, biogas etc. 50 percent of the electricity needs are covered by renewable energy sources in the district. That is tremendous. There are also many flexible consumers in the region: The fishing industry with its refrigerated warehouses, two large swimming pools with heat power co-generation systems etc. The clever use of these pools is at the crux of our idea to generate electricity precisely when we urgently need it, considering the heat as an inert system and using the swimming pools as storage units. Visitors to the spa won t notice whether the water is sometimes a half degree colder or warmer. Wind power plants in the offshore test field in Cuxhaven. The wind harvest is to be on offer on the etelligence marketplace in the future. As envisaged in the E-Energy scenario, control energy and network services are traded on a transparent electronic marketplace. Wolfram Krause explains that he imagines the refrigerated warehouse of the future simply having an Internet interface which I can use to integrate it into the market. If this takes place automatically and is not overly complex or time-consuming, customers can generate extra earnings using new products which are to be developed. He went on to say that private end customers must be given the opportunity to perceive energy as a valuable product. We want to make this happen through smart metering which uses visualization systems to show customers how they can re - duce their electricity consumption. Krause explained that even though electricity is generated locally, the model region will remain connected to interregional grids to be able to export the sometimes enormous amounts of wind power: Over 2.5 GW of wind power is available in the grid area of EWE NETZ GmbH. If we have high winds here and the load on the system is low for example during the night when people consume less electricity then we feed up to 1.5 gigawatt, which is 1.5 times the output of a nuclear power station, into the higherorder grid. This was not thought to be possible years ago and there are still some people out there who still think it's impossible. But we prove it can be done - time and again!

19 17 Kaemmererplatz in Cuxhaven s city center was formerly a marketplace for fish. On the etelligence marketplace, electricity is traded which is also used to cool Cuxhaven s fish catch. Krause went on to say that they can only give a real figure for the savings that are possible with ICT once the project has been installed since we can't do magic. The refrigerated warehouse will need just as much electricity each year as it does now since it will refrigerate just as much fish. But the overall system will become more efficient since you won't have to reduce the wind turbine performance if a surplus is produced and then switch on a gas turbine an hour later. You ll just simply convert the wind energy peak into more cold and instead of switching on the gas turbine later on, you ll shave the peak load by cutting back on refrigeration for the refrigerated warehouse. Praise for the etelligence project It is not possible for customers and distributed generators to actively participate on the market today due to proprietary or nonexistent interfaces, as well as on account of obsolete market mechanisms. With the development of a new marketplace and the definition of products for small, medium-size and large producers and consumers, the Cuxhaven model region makes an innovative contribution which will create the primary framework for automated business processes, particularly for small market players. The Cuxhaven model region is in an excellent position to guarantee the energy blend of the future, an optimum consumer mix and a secure and economic infrastructure. By combining the project with tourism, there are good possibilities for the interregional development of the solutions to create marketable and licensable products. Great importance is attached to standardizing the reference solution so that the final result is an endto-end, interoperable information platform from the generation and transportation/distribution of power to the use of electrical energy which can be easily mapped to other regions. This helps create the framework to also economically integrate small producers of renewable energy into the energy market without jeopardizing the security, safety and reliability of the system.

20 18 The winners of the E-Energy beacon project MEREGIO, Baden model region prizewinner Not only is the region of Baden famous for its wines, it has also inspired numerous creative minds, including Carl Friedrich Freiherr Drais von Sauerbronn, the inventor of the most environmentally friendly mode of transport of all time the bicycle. Given such a tradition, it must be possible to make E-Energy a success here, says Hellmuth Frey, coordinator of the MEREGIO project. It has not yet been decided where exactly the MEREGIO E-Energy project should be implemented in the Karlsruhe/Stuttgart region but the bottom line should be to achieve as many positive results as possible. As a large energy provider, of course we have all kinds of customers so we ll be able to find a good mix that can be integrated into the project. Regional self-sufficiency is a desirable goal albeit a goal that is difficult to achieve. For reasons of safety and security, the area will not be disconnected from the national grid since we don t want to leave our customers in the dark. That s for sure. Smart metering is a key element of the project: We ve put in a lot of groundwork here and initiated a pilot project which can act as a catalyst for the Display unit for previewing the price of electricity. E-Energy region where 1000 customers are already equipped with meters that can be read remotely, Frey explains. These meters allow greater flexibility in accounting and invoicing as well as in terms of product design. Customers are thus able to plan the use of their appliances and equipment at times when electricity is cheaper. The electricity is more expensive when it is in shorter supply and this helps the customer avoid making expensive losses. Praise for the MEREGIO project Many ideas and concepts have been proposed to achieve the goal of reducing CO 2 emissions by 2020 by 20 percent compared to 1990 levels. MEREGIO Minimum Emission Region is one such scheme and applies a holistic concept. The objective is to develop regions with power supply systems that are optimized with regard to their greenhouse gas emissions. This is based on three specific components, namely an E-Energy marketplace for producers of electricity, end customers and intermediaries for coordinating the supply and de mand of energy and complementary services; a sophisticated and innovative energy infrastructure; and a powerful information and communication infrastructure that links the infrastructure to the marketplace and controls it depending on the specific market situation at hand. The project focuses on developing technically economic concepts to implement the three components and put them to work in a pilot project with some 1000 participants in the Karlsruhe/Stuttgart area. How - ever, the project also goes one step further and plans to develop minimum emission certification for regions where concrete specifications and standards are developed on the basis of the experience gathered to motivate regions to actively reduce their greenhouse gas emissions and promote specific measures to cut CO 2 production.

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